While full coverage isn't a technical term for insurance, it describes this specific type of policy well. Unlike liability, a full-coverage auto insurance policy provides you with liability, collision, and comprehensive coverage. In other words, this type of insurance protects you in every aspect of your driving, including damage to your vehicle. In our accident example above, let's see how a car insurance policy with full coverage would respond.
Liability insurance pays if you cause an accident and are legally responsible for the other person's damages. You also pay for a legal defense if you are sued because of the accident. Liability is often divided into two separate coverages: bodily injury and property damage. Ask for liability limits that adequately protect your financial assets.
State minimum requirements may not be sufficient to pay for the other driver's damages if you are responsible for a serious accident. The costs of full-coverage insurance can vary greatly depending on the state and the car you drive, since types of coverage, such as collision and comprehensive coverage, are based on the actual cash value of the car. On the other hand, if your car is older or has a lower value, liability insurance might be sufficient, since full coverage premiums can be more expensive than paying out of pocket to repair or replace your vehicle if it is damaged, added to a total, or stolen. In the event of an accident, this type of insurance only covers injuries caused to people and property outside your car.
If you can't drive your car because of a covered loss, this coverage helps pay for a car rental or other transportation expenses so you can get back on the road. Liability insurance covers the cost of any damage or injury you may cause while driving, up to a certain amount in dollars. Some car insurance qualifying factors, such as your driving history, can significantly affect your insurance costs. And if your car is leased or financed, your lender will likely require you to take out collision and comprehensive insurance.
The policyholder's injuries or damage to their property if an uninsured or underinsured driver was at fault. Liability insurance is car insurance that covers damage or injury to a third party's property in the event of an accident. With Nationwide, it's easy to customize your policy with affordable Illinois auto insurance options. These can include towing, car rental reimbursement, property damage for uninsured motorists, replacing a new car, temporary coverage for leased or financed vehicles, accidental death benefit, and more.
Nearly every state requires drivers to have liability insurance, and in many states, liability insurance is the only type of car insurance you need to have. Every person has unique needs when it comes to car insurance, and that's why the experts at United Auto Insurance are here to help you every step of the way. In some states, your vehicle can be towed and you won't be able to claim it until you present proof of insurance. On average, auto liability insurance costs 51% less per year than full-coverage insurance, which generally includes liability along with collision coverage and comprehensive coverage.
You should take out full coverage insurance if you can afford it, since full coverage includes comprehensive and collision coverage, in addition to liability insurance.